PET FOOD - Kansas Department of Agriculture
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PET FOOD
The pet food industry in Kansas has been a source of within the pet food industry and impact facilities,
growth and is poised for additional growth in coming equipment, workforce and labeling. Several other
years. Kansas sits in the KC Animal Health Corridor, federal policies impede efficiency in business as well.
which includes several of the world’s largest pet food Distribution of product is a challenge, needing improved
manufacturers, along with more than 300 companies and transportation infrastructure as well as storage options.
organizations involved in animal health and nutrition. Pet Hiring and maintaining a workforce is difficult particularly in
food sales from the businesses within the Corridor account rural communities with a lack of housing.
for over half of the total U.S. pet food sales, and an important
portion of the total Kansas exports were animal and pet food Converting these opportunities into productive economic
exports. Proximity to pet food ingredients which are grown growth will require the development of a long-term growth
or produced in Kansas are a significant advantage for this strategy based on input from both public and private
region. Pet owners are a growing segment of the population, stakeholders in the pet food industry. Public outreach, both
and the purchasing power in this demographic opens up great locally and internationally, could set Kansas up as the leader
potential for this industry. in pet food manufacturing. Education and government
organizations can play a key role in promoting opportunities
Although great opportunity exists, the industry also faces for innovation and expansion within new and existing
some challenges which could serve as a barrier to the kind of businesses. Proactive efforts from key players in this sector
growth that is possible. Food safety regulations are increasing can result in growth for the pet food industry in Kansas.
2019 Pet Food
STATUS
With the growing trend of pet ownership, the pet food industry, which includes dog and cat food along with food for birds,
fish, reptiles, hamsters and other pets, is poised for additional growth. This business growth can develop into a larger market
of value-added products from the resources available in Kansas. Two of the top five pet food companies own manufacturing
operations in the state. According to estimates prepared by the Kansas Department of Agriculture and based on the IMPLAN
economic data model, the animal food industry in Kansas has a total direct output of approximately $5.4 billion and creates
3,771 jobs. The industry supports a total of 19,940 jobs and provides a total economic contribution of over $8.9 billion. The
dog and cat food manufacturing industry alone employs 2,423 with a direct output of over $3.6 billion. The dog and cat food
manufacturing industry supports 12,308 employees through indirect and induced impacts and creates a total economic
contribution of approximately $5.7 billion.
Pet food manufacturers located within the KC Animal Health Corridor represent 61 percent of the total pet food sold in the
United States. Founded in 2006 and anchored by Manhattan, Kansas, and Columbia, Missouri, the Corridor comprises more
than 300 companies and organizations involved in animal health and nutrition, including leading universities and research
institutions. Also located in this region are several facilities of some of the United States’ and the world’s largest pet food
manufacturers. These Corridor pet food manufacturing companies also account for 49 percent of global pet food sales.
According to the Euromonitor International data available in fall 2018, global dog and cat food sales alone amounted to nearly
$86 billion with other pet food totaling an additional $4 billion. In Kansas, animal and pet food exports were at 3.4 percent of
total pet food production which equates to $185.8 million and ranks this category 4th in state exports in 2017.
The 61 percent of U.S. pet food sales cited by the Corridor amounts to just over $14 billion of the U.S. total of $23 billion,
which corresponds to data from the American Pet Products Association (APPA). Companies with a business location within
the Corridor represent 56 percent of the total animal health, diagnostics and pet food sales, which totals almost $50 billion in
sales (total global sales = $88.2 billion). Companies located within the Corridor represent 67 percent of the total animal health,
diagnostics and pet food sold in the United States, totaling $21.5 billion in sales (total U.S. sales = $32 billion).
Data from the APPA National Pet Owners Survey shows 68 percent of all U.S. households own a pet: 48 percent of the U.S.
population owns a dog and 38 percent of the population owns a cat. Data from research firm GfK shows that among millennial
households, the percentage rises to 57 percent of millennials who own a pet with another 20 percent reporting they intend to
get a dog or cat. Also, 10 percent of U.S. pet owners are new to ownership, equating to nearly 8 million new pet owners within
the last year, the majority of which are millennials.
In addition, many other players in pet food fall outside the “animal health and nutrition” mission of the Corridor but are
important pieces of our vibrant industry. These include equipment manufacturers, processing support organizations, testing,
and lab services. The Corridor website lists hundreds of similar organizations by category, its “service provider” members.
OPPORTUNITIES
In order to develop a strategic growth plan for the pet food industry, it is important to understand the areas where Kansas has a
comparative advantage and the best opportunities for growth or expansion.
Factor Implications for Growth and Development Opportunities
Capital of the Pet No state or region has proclaimed itself as the pet food capital. Kansas could present itself in
Food Industry recruitment efforts as the key player in the pet food industry.
2019 Pet Food
Factor Implications for Growth and Development Opportunities
Export Maintaining and improving export infrastructure will help ensure demand for Kansas pet food
Infrastructure products around the world. Good roads for trucks, plenty of rail access across the state, a state-of-
the-art intermodal facility, and a central location in the United States are key to a strong export
infrastructure.
Ingredient Pet food uses raw meat, animal renderings, and grains or grain co-products grown or produced in
Sources Kansas. Raw meat is the number one ingredient in premium dog and cat food. Manufacturers note
the importance of processing facilities located near the ingredient supply. As Kansas grows animal
agriculture, opportunities to support this market with co-products increase.
KC Animal Health There is room for growth as other animal health companies locate to the KC Animal Health
Corridor Corridor that stretches from Manhattan, Kansas, to Columbia, Missouri.
Policy Kansas tax law allows sales tax exemption for farm machinery and equipment and various ag-based
Environment inputs. These state tax code provisions make Kansas a more attractive state for growth or expansion.
At the federal level, Kansas is fortunate to have elected members of Congress who strongly
support the agriculture industry. The Kansas congressional delegation will play an important role
in influencing positive changes related to federal regulations or legislation, including a national
traceability system, international trade, federal taxes, transportation rules, natural resources and
more.
Regulatory With the innovations at Kansas State University in pet food safety, Kansas is a leader in regulatory
Compliance compliance and in providing a safe, wholesome product.
Many existing pet food manufacturing facilities will be unable to comply with the Food Safety
Modernization Act’s changes to manufacturing regulations in the next 3-5 years. There is a huge
opportunity to attract replacement capacity to Kansas. Some estimates suggest the opportunity of
15 additional plants in Kansas over the next 5-8 years.
KDA received Federal State Marketing Improvement Program grant funds to develop FSMA
training modules for Kansas pet food industry licensees which were completed and made available
in fall 2018.
Supporting K-State and KDA provide expertise to guide pet food manufacturers looking to get started or
Institutional expand in Kansas. They can help businesses be successful in the regulatory environment as well as
Infrastructure offer some unique start-up and marketing assistance. Having both grain processing and large
animal expertise at K-State is an important part of being the pet food capital.
2019 Pet Food
CHALLENGES
While Kansas is poised for major expansion in the pet food sector, the following factors represent challenges serving as barriers
to achieving the objective of the strategic growth plan.
Challenge Details of Challenge
Consultants Much of the work done in economic development around where companies choose to locate or
expand is managed by consultants. Kansas needs to have more proactive interaction with the major
consulting firms across the country so that Kansas is always on their minds for possible locations.
Consumers The fastest growing segment of pet food is “grain-free” which is not beneficial for a major grain-
producing state like Kansas. This trend is linked to misperceptions about inflammation and
dermatitis issues in pets being caused by grain.
Critical Transportation infrastructure is critical for pet food processing. Access to processing facilities with
Infrastructure roads that can handle tractor trailers and access to rail for receiving raw commodities is important.
A lack of adequate housing in rural areas compounds the issue of a shortage of agricultural workers.
Communities need to clean up houses and/or neighborhoods which are in poor condition and
explore some spec home construction to offer to prospective employees. The state and federal
governments do not help the issue by subsidizing low-income housing in rural communities.
Distribution Pets are where the people are — the largest consumer base is on the coasts and around other major
urban centers which also means most of the product has to be shipped long distances if it is made in
Kansas.
Many small manufacturers of pet food need a warehouse and distribution facility but are not big
enough to make it work. A facility that could do this work for several small companies is needed,
particularly in serving the Kansas City market or housing for shipment from the Kansas City area.
Education of the There is a lack of awareness that the pet food industry focuses on all companion animal type pets
Scope of the (birds, fish, reptiles, hamsters, etc.) and not just on cats and dogs.
Industry
2019 Pet Food
Challenge Details of Challenge
International More work is needed to gain market access for Kansas pet food products around the world in terms
Trade of awareness, trade policy and shipping. Companies do not think of Kansas as a place to move their
business. We need to market the state as the pet food hub for national and international companies.
International buyers need to think of Kansas first when they are looking to source product.
Microbiological There is no private lab in Kansas where pet food manufacturers can have their products tested for
Testing micro concerns such as salmonella. This is important for smaller operations that may not have the
production to justify their own laboratory as well as for outside confirmation of internal testing.
Policy The increasing food safety regulatory environment has placed an additional burden on pet food
manufacturers to implement processes, including upgrading equipment, sampling product,
documenting activities and hiring additional employees to complete all of this work.
The U.S. has an antiquated view of poultry meal and poultry co-products as the only country in the
world with split definitions. Other species don’t have split definitions.
Though not unique to Kansas, there exist significant challenges due to federal laws and regulations,
including: Waters of the U.S., the Endangered Species Act, burdensome Occupational Safety and
Health Administration regulations and more.
Inconsistent labeling requirements, licensing requirements, etc. exist from state to state. Pet food is a
national and international business making consistent requirements very important to streamlined
operations.
Corporate farming laws in Kansas make it difficult for poultry production and poultry is a major
meat ingredient in pet food.
Supply Chain From an ingredient-sourcing perspective it is difficult to get ingredients such as rabbit, venison,
duck, potatoes, sweet potatoes and field peas, all of which are popular in formulations today. This
could potentially drive production to the west coast to be closer to these ingredients and the large
population base.
Workforce Pet food manufacturers, similar to other agricultural companies, face challenges finding and hiring
Development qualified candidates.
In the pet food industry, it is often more challenging to find employees who are willing to work
in manufacturing rather than finding employees with a specific level of education. Hiring and
maintaining a workforce particularly in the rural communities is a challenge.
The educational system and current culture focuses heavily on preparing high school students for
college and undervalues the opportunities available in technical careers for students with a strong
work ethic.
2019 Pet Food
SUCCESSES
Key successes in the pet food industry:
• Petfood Forum relocated to Kansas City from Chicago; the relocation was received with enthusiasm and the event will be
held in Kansas City again in 2019.
• In 2018, Kansas commodity partners joined KDA to host a Kansas grains trade show booth at Petfood Forum in Kansas
City, highlighting corn, sorghum, soybean and wheat.
• Together with Food Export Association of the Midwest, the KDA ag marketing division brought a pet food ingredient
buyer mission to Kansas City in April 2018. Five overseas buyers were sponsored as part of the mission.
• The pet food curriculum has become a separate area of focus within the K-State grain science program allowing students
to learn to work specifically in the pet food business. In the 2017–2018 academic year, 25 students enrolled in the pet food
minor and 27 students enrolled in the pet food option of the feed science and management major.
• The KDA ag marketing division secured a STEP grant to include a trade mission to Petfood Forum–Asia. The department
took two Kansas pet food industry companies to the forum and the VICTAM trade show in late March 2016. In 2018,
KDA secured a STEP grant and returned to the trade show with three Kansas companies.
• Numerous pet food trade missions over the past year have opened discussions with potential export market opportunities:
Petfood Forum Asia in March 2018, China in August 2017, Cochran Fellowship in-country from Serbia in March 2018.
• K-State has received sponsorship to establish a professorship in the pet food program as well as a gift supporting faculty
and research in the area of pet food and nutrition science.
• In collaboration with other states and national organizations, online FSMA pet food training modules and a training
course were created and made available to pet food licensees in fall 2018, bringing increased training opportunities to
Kansas.
• K-State received two Federal State Marketing Improvement Program grants to support pet food research.
• Expansion of FFA programs in urban areas could help expand the workforce to meet the needs of pet food companies in
Kansas; Wichita Southeast established an FFA program in 2017 and Washington High will start an FFA program in 2019.
• K-State began hosting the Petfood R&D Showcase, an annual event featuring leading suppliers, researchers and pet food
industry colleagues, with cutting-edge scientific presentations and interactive labs.
2019 Pet FoodPet Food
GROWTH OBJECTIVE:
Establish Kansas as the pet food capital of the world by increasing
support of the pet food industry, attracting new businesses to the state
and expanding opportunities for existing companies to increase sales
and profitability.
OUTCOMES & ACTION ITEMS
Leaders from throughout the Kansas pet food industry will continue to collaborate in the development and implementation
of a long-term strategic growth strategy with input and discussion among key partners. Industry-identified desired growth
outcomes, initially developed in 2016 and expanded to include action items, will be implemented by industry and key partners
and updated annually at the Kansas Governor’s Summit on Agricultural Growth. Following are the proposed action items to
continue building on the achievement of the pet food sector desired outcomes.
High Priority Outcomes
National reputation as the destination for expansion in the pet food industry through trade show displays, marketing
initiatives, advertisements, recruitment trips, and proven success.
ACTION ITEMS:
• Develop promotional materials highlighting Kansas as the pet food capital of the world.
• Meet with site consultants to introduce them to Kansas.
• Send annual reports and letter of invitation to Kansas.
• Build relationships with protein and grain suppliers.
A competitive and competent workforce to meet the needs of pet food companies in Kansas. Connections between the pet
food industry and high school agriculture education programs would encourage more interest in careers in pet food that
would lead students to pursue specialized training in technical schools, community colleges and universities.
ACTION ITEMS:
• Focus on middle school and high school programs to find individuals with the necessary skills to fill jobs in pet food
companies.
• Expand FFA programs in urban areas.
• Develop talent outside of Kansas State University to broaden the pool. Use community colleges and urban high schools
in addition to high school agricultural education programs.
• Increase awareness and educate students on the job opportunities available in the industry by having Kansas
Department of Agriculture and industry representatives speak at Kansas schools, participate in career fairs, and host
facility tours.
2019 Pet FoodContinued support of the pet food minor in the grain science and industry department in the K-State College of
Agriculture.
ACTION ITEMS:
• Work with advisors to encourage students to look into this industry.
• Encourage companies to visit K-State and establish a relationship as a supporter of the program.
• Work with K-State and pet food companies to design internships.
• Support pet food innovation center.
• Expand pet food options to offer B.S./M.S./Ph.D. level degrees.
• Explore technical training and support consortium for workforce development.
• Engage industry in reworking curriculum to meet industry needs including marketing, business principles and
technical skills.
Fully functioning pet food industry association at the state and national level to advocate for the pet food industry.
ACTION ITEMS:
• Work with industry experts to establish needs and goals of an association, which could then be a leader for the pet food
industry nationwide.
Facilities to meet the needs identified by the industry, to possibly include incubators, manufacturing facilities or
distribution centers.
ACTION ITEMS:
• Assemble a group of representatives from across the supply chain to identify the type of facilities and incubator spaces
needed for the industry.
• Hold the first group meeting and identify the primary need by spring 2019.
Medium Priority Outcomes
Expanded laboratory testing to provide Kansas companies with quality services and fast turnaround. For example,
salmonella testing for pet food and ingredients would be a benefit in northeast Kansas since most samples are currently
sent out of state.
ACTION ITEMS:
• Establish testing capability at the KDA laboratory in Topeka.
• Consider addition of private labs in northeast Kansas, possibly at the new American Royal business park.
• Advertise the testing services offered in Kansas.
• Recruit third-party lab services (they exist, but we need a location in Kansas).
Private and public collaboration to develop and construct manufacturing facilities or distribution centers as speculation
plants to attract and accommodate new companies to Kansas.
ACTION ITEMS:
• Work with industry consultants to identify companies which may be interested in a move to Kansas.
• Contact private sector individuals for investment purposes.
• Work with design and construction companies to determine if the potential facility could fit more than one industry.
2019 Pet FoodA marketing program to promote the importance of the pet food industry in Kansas, similar to the dairy initiative.
ACTION ITEMS:
• Design a campaign similar to the Kansas Dairy Initiative.
• Create marketing materials to promote Kansas and the pet food industry.
• Attend industry events to establish relationship and credibility with industry representatives.
• Work with local economic development professionals to determine sites, resource needs, etc.
• Promote the Strategic Growth Initiative process, a pilot program to help counties and communities proactively seek
potential business growth opportunities, working with the Kansas Department of Agriculture, the Kansas Department
of Commerce, and K-State Research and Extension.
• Help farmers connect with pet food manufacturers.
Low Priority Outcomes
Ongoing professional dialogue to analyze and prioritize ideas within the pet food industry. Potential topics would include
value-added products, specialty ingredients, marketing, consumer trends, investors, research, etc., and would build upon
the Pet Food Forum held in Kansas City.
ACTION ITEMS:
• Continue to host the Petfood R&D Showcase for industry, K-State and economic development representatives.
• Focus on value-added products, specialty ingredients, consumer trends, marketing, etc.
• Incorporate new ideas into the state association’s efforts.
• Consider a pet food innovation center.
Effective array of “soft” incentives (e.g., mentorships, internships and training on interaction with financers) to ensure
that companies have access to the best information, workforce and financing to economically grow and thrive in Kansas
communities and bring pet food products to market. The need for physical space for small-scale product development
also exists.
ACTION ITEMS:
• Find small spaces for start-up companies.
• Distribute resources and information through seminars, webinars, industry outlets, etc.
• Research investment forums conducted in other states.
• Research Iowa Entrepreneurship Internship program.
• Combine with marketing objective.
• Work to establish tax incentives.
Policies in this document are a reflection of industry discussion and not a representation of state government.
2019 Pet FoodGrow Smarter. Grow Stronger.
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